I wanted to make sure all of our subscribers to the DecisionPoint Blog on StockCharts know about our Cyber Monday Special and I want to share the "Diamond of the Week" as soon as possible. I presented it on today's DecisionPoint Show that will air later today on StockChartsTV and I think you'll want to review it before tomorrow's open. But here is the skinny on our Cyber Monday sale which ends midnight PT tomorrow!
Save 20% on ALL DecisionPoint subscriptions! This rate will be locked in! **
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DP "Diamond of the Week"
Amazon.com, Inc. (AMZN)
Earnings: 1/28/2021 (AMC)
Amazon.com, Inc. engages in the provision of online retail shopping services. It operates through the following business segments: North America, International, and Amazon Web Services (AWS). The North America segment includes retail sales of consumer products and subscriptions through North America-focused websites such as www.amazon.com and www.amazon.ca. The International segment offers retail sales of consumer products and subscriptions through internationally-focused websites. The Amazon Web Services segment involves in the global sales of compute, storage, database, and AWS service offerings for start-ups, enterprises, government agencies, and academic institutions. The company was founded by Jeffrey P. Bezos in July 1994 and is headquartered in Seattle, WA.
I wasn't completely surprised to see Amazon (AMZN) come up in this morning's PMO Crossover Scan. Mainly because last Friday in my DecisionPoint Diamonds Recap, I noted that the sector to watch was Consumer Discretionary (XLY) and Broadline Retailers ($DJUSRB) industry group.
I first covered AMZN in my March 26th Diamonds Report. It is up 55% since then. We have a symmetrical triangle pattern. These are continuation patterns so we should look for an upside breakout. The RSI is mostly neutral due to price moving sideways. The PMO just triggered a crossover BUY signal. The OBV is flat along with price so that is a neutral indicator. The StockCharts Technical Rank (SCTR) is greatly improving since its low this month. We may be catching this one early as the 5-EMA just had a positive cross over the 20-EMA.
Looking for an entry on AMZN on this shorter-term trade? I use the 5-minute candlestick chart in my trading room to determine buy and sell points. Just using the PMO and RSI headings or crossovers, you can improve your entries nearly every time. Below is the 5-minute candlestick chart for AMZN. The first two green arrows were entries today. The first arrow is using only a PMO crossover BUY signal. My preference is to wait until both the PMO is on a BUY signal (or rising) and has a positive RSI. That occurred at the second arrow during our trading room. By timing your entry with just these two indicators, you would have had almost a 0.5% gain on the day.
It appears that AMZN is nearing another entry point. The PMO has turned back up and the RSI just moved positive. You could wait for a PMO crossover BUY signal as a less risky entry.
If this type of analysis is appealing to you, consider taking advantage of the Cyber Monday Special! Coupon code: cyber2020 will be active for 24 more hours (ends Tuesday night!). Additionally, this is the analysis we do in the free DP trading room as well as in the exclusive "Diamond Mine" on Fridays (included with a Diamonds Report subscription).
Happy Charting! - Erin
Technical Analysis is a windsock, not a crystal ball.
Helpful DecisionPoint Links:
DecisionPoint Alert Chart List
DecisionPoint Golden Cross/Silver Cross Index Chart List
DecisionPoint Sector Chart List
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
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